1. BBB Ltd issues an IPO. The company's investment bank demands a spread of 4 per cent of the offer price, which is set at $5 per share. 4 million shares are issued. What are the proceeds for the issuer (in millions of dollars to the nearest three decimal places; dont show $ sign or commas eg 18.404)?

2. A company is planning a new plant and needs to raise (net of underwriting cost) $23.75 million to finance it. The company plans to raise the money through a general cash offering priced at an offer price of $5 a share. The underwriters charge a 5 per cent spread. How many shares does the company have to sell to achieve its goal (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount)

Select one:

a. 5.000

b. 26.316

c. 4.762

d. 4.750

3. ABC Ltd issues a $28 million IPO providing proceeds to ABC of $3.6 per share, from an offer price to the public of $4 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $412,000. The company's share price increases 8 per cent on the first day. What is the underpricing cost to the company of issuing the securities? (in millions of dollars to the nearest three decimal places; dont use the $ sign eg 7.897)?

4. ABC Ltd, a high-technology company, issues a $14 million IPO with an offer price of $6 per share, underwritten at $5.64 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $351,000. The company's share price increases by $0.9 on the first day. What is the company's total cost of issuing the securities (in millions of dollars to three decimal places; dont use $ sign eg $4.5766 million is 4.577)? (Remember to round the number of shares issued to a whole number)